British media group Daily Mail & General Trust said its business-to-business units drove first-half underlying operating profit up 20 per cent, but it remained cautious about the outlook, especially in Britain.
The group, which publishes newspapers including the Daily Mail, supplies financial information and runs exhibitions, said trading was ahead of its expectations as the advertising market improved and cost cuts and disposals helped profit.
Adjusted operating profit was £144 million, beating market expectations of £142 million.
Revenue fell 3 per cent on an underlying basis to £974 million for the six months to April 4th, Daily
Mail said today, broadly in line with the SmartEstimate of £982 million.
Daily Mail said advertising trends in Britain were improving and should move into growth in the second half, unless a new downward trend emerged. In the second quarter, national ad revenues rose 11 per cent and regional ad sales fell 5 per cent.
"Whilst we remain cautious about the outlook, particularly in the UK, we are increasingly well positioned to weather current economic uncertainties and to take advantage of improved conditions as they materialise," the company said.
Rival British newspaper groups Trinity Mirror and Johnston Press recently reported regional advertising declines of 5 per cent and 7 per cent respectively for the quarter.
Reuters